45
1 Q1/2021 Opportunity Day
1
Q1/2021 Opportunity Day
Key highlights Q1/2021
Strong Operating Performance
• Q1/21 Revenue 845.6 MB Growth YoY 2.7 %
• Q1/21 Net Profit 202 MB Growth YoY 12.4%
• 2021 Organic Premium Sales
• Forecast premium sales to be 17,250 MB
• Forecast total Sales to be 25,000 MB with M&A
2
Q1/2020 Q1/2021
179
202
Net Profit
+12.4%Million Baht
Q1/2020 Q1/2021
823
Revenue
+2.7%Million Baht
845.6
3
Key highlights 2020-2021
01 | Motor Insurance 02 | Home Insurance 03 | Health InsuranceProduct and
service design have been adjusted
to respond the changing in
consumer behavior due to COVID-19
• Product segmentation by persona
• 3X – New product in 2021
• More new product in 2021
• New price for insurance policy based on risk and persona
• Product segmentation by persona
• Adjust current and future product based on customer data
Market PenetrationDeveloped new product > 20 products
Technology EnhancementDeveloped new product and service
04 | Lifestyle Insurance
• Valentine’s Product• Lucky Year Ritual
Insurance (ประกนัปีชง)
3
High Short-term growth in Q2 from spiking in COVID cases and vaccine allergy
4
Cumulative number of Covid-19 cases in Thailand
COVID-19 situation is expected to be worsen in Q2/21
28,863
90,722
Y2020 - 31 March 2021 1 April-20 May 2021
Growth in COVID insurance product
Expected total insurance premium from COVID-19 products in 2021
~1,000 Million THB
Q1
Q2
~200 Million THB
Expected premium for each quarter in 2021
~700 Million THB
Q3-4 ~100 Million THB
New Lifestyle Products launched in Q1 to accelerate TQM middle-term growth
5
TQM FAIR - New motor insurance product with new partner
6
New product for motor insurance
Partner with MCOT to introduce new product to upcountry customer
AB123
White-car motor insurance
Drive less pay less
Motor insurance for upcountry customer
Partner with AIS to innovate IOT technology for Drive-less customer
TQM new service for salary person to accelerate growth in Q2 onwards
7
New product for every salary person
TQM new product will support not only full-time worker, but also every freelancer
TQM Live Space to communicate with salary person
TQM Live Space to hold discussion about appropriated service for every salary person
TJN – 2021 TargetTJN
≈1,000Sales Agents
& Dealers
500 Million THBSales Premium
at the end of 2021
Expand to 76 branches
8
TJN Launched new lending service to cover all segment
New Company “Easy Lending” New growth with new lending service
9
Expected to launch in early July after getting approval
• Increasing customer accession through new lending service
• Cost saving for better margin
TJN Leapfrog Domestically Through M&A & JV to support long-term growth
Merger and Acquisition projects Joint Venture project
10
Formed new JV to expand TQM insurance service though online channel
Expanding TQM broker business domestically
To complete due diligence within July
Relentless expansion to serve all segment in Thailand
TJN New domestically expansion plan in 2021
11
New domestically expansion plan
JV
Upcoming JV with leading retail partner
New JV and M&A will accelerate inorganic growth for TQM in 2021
M&A Deal for revenue expansion
M&A Deal to increase selling channels
Thai Situation & Insurance Market
Overview
12
Tailored Products – Dynamic Premium
Millennials are more significant and demand personalization. Insurance packages will need to speak to their behavior and developed accordingly
Claims Go Virtual
In response to the pandemic, remote claims are being practiced more. However, roadblocks such as fraud detection warrant partnership ecosystem to pool in experts and form robust claim handling
Source: Firstdata
Extended Analytics
Extended Analytics will require new data types to be collected, analyzed and used to help insurers craft more responsive strategies, leaner operations and experiential customer service
Source: SwissRe, Deloittle insights
World Trend: New normal continuously drives changes in insurance market
13
Number of vehicle and vehicle insurance premium show promising growth in 2021
14Source: Department of Land Transport
Cumulative number of vehicle as of Q1 2021
Private Car (<7 seats)
10,614,511 (26.2%)
Pick-up truck
6,917,565(17.1%)
Public Motorcycle
166,728 (0.4%)
Taxi
87,334 (0.2%)
Other car(Truck, bus, other)
1,180,646 (2.9%)
Private Motorcycle
21,524,509 (53.2%)
2016 2017 2018 2019 2020
123137
126145
Vehicle insurance premium (Billion THB)
146
Nearly 20 million market potential (4-wheel vehicle)
Source: OIC, BORA *2019 Statistic **Q3/2020 Statistic
25,112,811
25,605,324
26,087,649
26,587,033
27,224,743
CAGR 1.63%
Houses Statistic**
Fire Insurance Portion*
Fire insurance policies:
3.2 Million Houses as of Dec 2020:
27.2 Million
Thai Market: Housing insurance statistic 2020
20202019201820172016
15
~12% of total house
Only 1 out of 9 houses has fire insurance
Source: OIC, BORA *2020 Statistic **Q4/2020 Statistic
Thai Market: Health insurance statistic 2020
Growth 10.9% YoY
Accounted for 11.9% of total premium from life and non-life
Health Insurance Premium 101,404 MB
16
Non-Life Insurance Broker continually shares major market penetration channel
Life InsuranceBroker grows perpetually to around 5%.
58%
57%
55%
55%
58%
58%
59%
60%
14%
12%
14%
13%
13%
14%
13%
12%
13%
14%
15%
16%
14%
13%
14%
14%
5%
4%
4%
4%
3%
3%
3%
4%
10%
13%
12%
11%
12%
11%
11%
10%
2013
2014
2015
2016
2017
2018
2019
2020
Broker Bank Agent
Telemarketing
Other*
55%
52%
52%
51%
50%
49%
52%
52%
39%
42%
42%
43%
44%
44%
40%
39%
2%
2%
2%
3%
3%
3%
5%
5%
4%
4%
4%
3%
3%
4%
4%
4%
2013
2014
2015
2016
2017
2018
2019
2020
Agent Bank Broker Other**
TQM will expand capabilities as leading broker in Life and Non-Life insurance, capturing all market opportunities
* Other: Organization and Internet **Other: Telemarketing, Internet, Website and Walk-in
17
Expected high growth in insurance premium in 2021
Aim to increase insurance
premium to 17,250 in 2021
18
19
TQM Growth Path in 2021
20
Goal
50,000 MB
On Insurance Premium
Y2026
20
21
Target:50,000 MB on Insurance
Premium Y2026
Strategy for 2021 – The Bridge to Beyond
Y2020
01 l Strengthen existing channels
02 l Grow sales through cross-selling
03 l Enhance insurance ecosystem through strategic partnership
04 l Grow inorganic through M&A
05 l Expand Regional
Digital StrategyNumber 1 Digital Insurance Broker in Regional
21
Strengthen strategic segment
Retain existing customer Expand customer bases
• Maintain renewal customers
• Expand TQM ecosystem with partner
• Integrate customer data through TQM’s sale channels
• Up-selling and cross-selling
• Corporate Solutions
The best omnichannel experience for every customer22
Strengthen existing channels
TELE-SALES / TELE-CHAT
MARKETING BRANCH
CORPORATE CHANNEL
DIGITAL PLATFORMS/ E-COMMERCE
▪ 68 year’s experience, Over 95 branches countrywide
▪ Direct Sale Services from over 500 specialist agents countrywide
▪ TQM have taken care of over 20,000 corporate customers
▪ Online Social Commerce▪ Chatbot/ Chat Center▪ Insurtech Application
PARTNERSHIP
The best omnichannel
experience for every customer
23
TQM Unlocking Opportunities and Capture Value with Corporate Solutions
24
Key Strategy for Corporate Solutions in 2021
Insurance Consultation and AdvisoryClaim Advocacy
Risk Management Driven
Client Centric
Cross Selling and Up Selling to existing corporate client
Distribution Channel 95 branches and Expand Customer Service Center Nationwide
Using Big Data and Analytics to identify Risk and propose the solutions
Product Innovation & Distinctive Services
Aim to increase both cross-selling and up-selling throughout every platform
TELE-SALES / TELE-CHAT MARKETING BRANCH CORPORATE CHANNEL DIGITAL PLATFORMS PARTNERSHIP
Motor Health Home Special
Products Cross-selling & Up-selling
Multi channels Cross-selling & Up-selling
25
COVID also unlock the growth in health and home insurance
CoronavirusInsurance
HomeInsurance
TQM TechnologyUnlock Product
PreferencesTQM Product Development
HealthInsurance
Product Mapping
26
Smart home and home care platform will be the toolsto expand home insurance business
SMARTER HOME INSURANCE AND HOME CARE PLATFORM
Compare & Buy Home Insurance Quotes in minutes
Making A Home Insurance Claim Simply
Reliable Home Insurance Calculator System
27
Photo credit: freepix, Unsplash
Market Segmentation for Insurance product
01 | Motor 02 | A&H
Market segmentation
With Big data and Insurtech platform, segmented productwill be launched in 2021
CAR SEGMENTATION
MORE THAN 20 PRODUCT TYPESTO BE LAUNCHED IN 2021
04 | Lifestyle 03 | Home
28
TQM also expanded to new area throughout digital and offline partnership
Selling Channel Affliates
And more
Marketplace Platform
And more
Healthcare Businesses
And more
Tech Companies
And more
Insurance Companies
And more
Media
And moreProperty Platform
And more
Claim & GaragePlatform
And more
29
TQM Regional expansion is leaping onto a promising path
Thailand
Setting up new operations
Cambodia
TQM is storming its success into Cambodia
Products under approval process by Cambodian Authority
TARGET 2021 : 1.5 Million USD
30
(Delay due to government lock down)
BIC Insurance in Cambodia
Source: BOI
31
BIC Insurance update Q1/2021
Business Development Officer was appointed in March 2021
On-going product filing from MEF for motor and property product, expecting to get approval within July 2021
Market research on digital channel will be utilized technology from TQM Deal conclusion through BIC Insurance in Dec 2020
TQM InsurTechMoving Forward
33
34
TQM Has Created a Value-added Ecosystem to Enhance Our Customer Service
• TQM Customer Centric Solution
• Digitize RPA and people skill set
Health Insurance
Car Insurance House Insurance
Life Insurance
TQM Mobile Platform
Agent Life Platform
Call/Chat Center
TQM Mobile Platform
Agent Life Platform
Location-based Telesale
TQM Mobile Platform
TQM Home Platform
TQM Website & Mobile Platform
Motor claim service
TJN Agent Platform
Chat Center
34
UBI Co-create providers for multiple Auto Insurances
35
New UBI for every car owner Partner with AIS to deliver new car insurance product
• UBI can be used for insurance-premium calculation to give fair price
• Easy to connect
Partner with AIS to deliver better technology service for TQM customer
Opportunities with partners across sectors
B2B2C Platform Motor Platform
x x
Life/ Health Platform
36
TQM LifeAppTQM Smart Agent
TQM X InsureTECHHome Platform PA/ Health Claim service Micro lending: Installment
xx
TelemedicineCo-creation
Provider &Hospital Health Claim-TPA Service
Motor Claim-ClaimSi
37
Financial Highlight in
Q1/2021
37
• Q1/21 Revenue 845.6 MB
+22.5 MB (2.7% YoY)
• Q1/21 Net Profit 201.7 MB
+22.3 MB (12.4% YoY)
62% 58%
37% 40%
1% 2%
Q1/2020 Q1/2021
Other¹
Service
Brokerage
TQM performance in Q1/2021
Life insurance²
THB 489.6
Million
Note(1) Other revenues include interest income and others(2) The maximum regulated life insurance commission rate is 40% (3) The maximum regulated non-life insurance commission rate is 18%
845.6823.0
+2.7%
Revenue Q1/2021 (Million THB)
38
7%
93%Non-life insurance³
507 466 490
307 314
339
912
17
Q1/2020 Q4/2020 Q1/2021
Other Income
Service Revenue
Commission Revenue
Revenue of TQM by type
+53.8 (6.8%)
+22.5 (2.7%)
• Total income increased by 22.5
million THB or 2.7% YoY from
premium growth of life & non-
life insurances and service
revenue.
• Total income of Q1/21 has
increased QoQ due to growth
in premiums.
Strong performance in both YoY and QoQ
39
Strong performance in both YoY and QoQ
672 685 690738
823
747774 792
846
2019 2020 2021
+22.5%YoY
+2.7% YoY
+12.2%YoY+7.4%YoY
+9.1%YoY
107122 127
151
179 163170
190
202
2019 2020 2021
+68.3%YoY +33.0%YoY+33.3%YoY
+25.9%YoY
Quarterly Total Revenue
Quarterly Net Profit
Strong growth
for the whole
year in both
revenue and
net profit
40
+12.4%YoY
TQM performance in Q1/2021
Service Cost to Income
-2.0%
41Q1/20 Q4/20 Q1/21
Service Cost
407 368 401
-1.4%
+9.1%
Q1/20 Q1/21
49.5%47.5%
TQM performance in Q1/2021
Admin Expense to Income
-0.8%
42Q1/20 Q4/20 Q1/21
191 187 189
-0.8%+1.4%
Administrative Expense
23.2% 22.4%
Q1/20 Q1/21
Net Profit EPS
Q1/2020 Q1/2021
179
202
+12.4%
Q1/2020 Q1/2021
0.60
0.67
+11.7%Baht / ShareMillion Baht
TQM performance in Q1/2021
43
TQM performance in Q1/2021
44
21.8%
24.0% 23.8%
Net Profit Margin
Q1/20 Q4/20 Q1/21
31.8%
34.4% 34.2%
EBIDA
Q1/20 Q4/20 Q1/21
1.191.06
0.47
D/E
Q1/20 Q4/20 Q1/21
12.5%
15.2% 15.6%
ROA
Q1/20 Q4/20 Q1/21
24.5%
29.6% 28.5%
ROE
Q1/20 Q4/20 Q1/21
Contact
Sumrit Rongkawilit
+662 119 8888 ext. 5234
Rio Khundeeklai
+662 119 8888 ext. 5009
IR Team Email
45
Q&A Session
